Key Person Insurance

Protect your business against the loss of valuable people

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Every business has a few individuals who make all the difference. They carry the knowledge, relationships, or skills that keep everything running smoothly. When something unexpected happens to them, the impact on your operations and revenue can be significant.

Key Person Insurance gives your business a financial safety net if a crucial employee passes away or is diagnosed with a serious illness. It provides a cash lump sum that helps you stay stable while you adapt, regroup, and keep moving forward.

At Howden, we design solutions that match your company’s unique needs. You can feel confident knowing you have protection in place at a time when your business needs it most.

Business professionals shaking hands in a modern city setting, symbolising leadership, trust, and key person protection.

Who can be considered a key person

If losing someone’s expertise or leadership would affect your company’s performance, they’re likely a key person. This applies to businesses of all sizes in the Philippines.

Examples include:

  • Key shareholders
  • Company directors or CEOs
  • Senior managers and high performing sales staff
  • Operations or IT managers
  • Senior web developers or technical specialists

Depending on your structure, you may want to include other roles too. For small business owners or sole proprietors, insuring yourself may be essential to safeguarding the company.

Why Key Person Insurance matters

This type of cover is designed to protect the business itself.

The payout can help you:

  • Pay off business debt and protect cash flow
  • Cover recruitment and onboarding costs when finding a replacement
  • Manage penalties or lost revenue if you’re unable to deliver to clients
  • Support salaries, dividends, and operational costs during recovery
  • Protect sole traders who are personally liable for business obligations

It gives your business breathing room during a difficult time, which can be priceless.

How the lump sum is calculated

The payout amount can be set in a few ways:

  • A multiple of business profits
  • A multiple of the key person’s salary
  • The value of outstanding loans

Your ideal setup will depend on your company’s size, structure, and risk profile. Our consultants will guide you through the options and help you choose the approach that suits you best.

When to take out Key Person Insurance

There’s no perfect time. The question is simple.

Do you have employees whose absence would affect your revenue, operations, or growth?

If the answer is yes, then it’s worth considering this cover.

Startups and scale ups often rely heavily on a handful of people. Established companies depend on specialists and leaders who are difficult to replace. Both can benefit equally from putting protection in place.

Why choose Howden

We take a results-first approach. Our broking teams are empowered to think creatively, move quickly, and find solutions that genuinely support your goals. We focus on your business, your people, and the culture you’ve built. That’s how we design protection that makes sense.

We also work closely with trusted providers in the market so we can secure strong terms and negotiate on your behalf. Our long term client relationships are built on service, transparency, and a deep understanding of what makes your business unique.

Talk to us

Whether you’re reviewing an existing plan or exploring protection for the first time, we’re here to help. Get guidance from specialists who understand the Philippine market and who are committed to supporting your business for the long term.

Get in touch